Vietnam Agribusiness Report

Providing expert analysis, independent forecasts and competitive intelligence on the agribusiness industry.

Report includes: BMI Industry View, Industry SWOT Analysis, Industry Forecasts, Supply & Demand Forecasts, Commodity Price Analysis and Company Profiles.

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Vietnam Agribusiness Report
Product Price
$1,295.00

BMI View: Recent developments in Vietnam's economic and business environment s add further weight to our positive view on its agribusiness sector. The industry holds strong growth opportunities in terms of production, exports and retail sales, particularly with regard to the rice, coffee, livestock and dairy sectors. Moreover, economic and financial integration in South East Asia will benefit Vietnam's exports of rice, dairy and coffee. However, Vietnam is facing growing competition in its key markets . T he fulfilment of its promising potential will only be achieved if the country steps up its competitiveness and improves both product quality and supply chain efficiency. Vietnam will have to significantly ramp up investments on crop productivity in order to not be left behind and , if it does, it will be able to produce more value-added crops and maintain its status as an export spearhead.

Strong Growth Ahead
Vietnam - BMI Market Value & Select Commodities Production Growth (2010-2020)
e/f = BMI estimate/forecast. Source: National sources, BMI

Key Forecasts

  • Pork production growth to 2019/20: 19.9% to 3.0mn tonnes. After going through challenging times amidst high feed costs, disease outbreaks and weaker growth, the livestock sector has been on the recovery trend since 2014-2015. Growth will remain strong in the medium term, helped by higher local meat prices and economic growth.

  • Milk production growth to 2019/20: 61.9% to 876,000 tonnes. Dramatic increases in cattle numbers and increased public and private sector investment - part of the effort to reduce the country's growing import dependency - will be the main boost to growth. Commercialisation will also play a key role as larger, more efficient farms come to play a greater role in milk production.

  • Sugar consumption growth to 2020: 23.0% to 2.4mn tonnes. Rising incomes, population growth and increased consumption of manufactured food products will help sugar consumption grow quickly in the coming years. Domestic production growth will not be able to keep up with consumption expansion.

  • 2016 BMI universe agribusiness market value: USD41.1bn (up from USD38.9bn in 2015; growth expected to average 4.5% annually between 2016 and 2020).

  • 2016 real GDP growth: 6.3% (down from 6.7% in 2015; predicted to average 6.3% over 2016-2020).

  • 2016 consumer price index: 2.1% y-o-y (up from 0.6% in 2015; predicted to average 4.3% over 2016-2020).

K ey Developments

The 2015-2016 El Nino episode, which ended in May according to the Australia Bureau Of Meteorology, caused severe weather disruption to Vietnam. The country recorded low rainfall in 2015 and a drought over most of H116. This will lead to a decline in rice production and a slowdown in coffee output in 2015/16.

The return to more normal weather conditions bodes well for the 2016/17 grains crop and we forecast agriculture to recover next season. However, the coffee crop is likely to decline as trees were affected by the H116 drought, and some coffee farmers are switching to more profitable crops including pepper.

Improvement in Vietnam's economic activity in 2016 will help consumer spending increase after weak demand in 2014 weighed on demand for value-added agricultural products, including dairy. The stronger economic outlook, coupled with some reforms regarding foreign investment and state-owned enterprises are attracting a growing amount of domestic and foreign investors and reaffirm our bullish view on the agribusiness sector. Vietnam is seeing a wave of private investment in its upstream (farming) and downstream (dairy product manufacturing and distribution) dairy sector. The feed sector is also attracting investors, such as Cargill, which opened its 11th feed mill in May 2016, and Royal De Heus, which opened a seventh feed factory in April 2016. The dairy sector is also recording strong investment and output growth.

Several sectors are also monitoring the development of the Trans Pacific Partnership, which will reduce tariffs if implemented. In particular, livestock producers are looking at restructuring in order to increase their competitiveness.

The Mekong River is one of the key elements behind our positive outlook for Vietnam, as it is the cornerstone behind its fertile lands. However, two key risks are hovering over the river and its impact on the region's agriculture. The most pressing is linked to the upcoming boom in hydropower along the river, as the planned construction of multiple dams will drastically change river flow and, therefore, the ecosystems, irrigation and land profile of the regions alongside the river. Climate change is posing a more insidious and longer-term risk to the future prospects of agriculture in the Mekong region, as it will lead to a significant increase in average temperatures and to the reduction in the size of the Mekong delta via coastal erosion, rising sea levels and the growing salinity of arable land.

BMI Industry View
7
SWOT
10
Agribusiness
10
Industry Forecast
12
Grains Outlook
12
Latest Updates
12
Table: Vietnam - Grains Production And Consumption Outlook
13
Table: Risks To Outlook
13
Structural Trends
13
Table: Corn Production & Consumption (Vietnam 2012-2020)
15
Rice Outlook
16
Latest Updates
16
Table: Vietnam - Rice Production And Consumption Outlook
17
Table: Risks To Outlook
17
Structural Trends
17
Table: Rice Production & Consumption (Vietnam 2012-2020)
20
Dairy Outlook
21
Latest Updates
21
Table: Vietnam - Dairy Production And Consumption Outlook
22
Table: Risks To Outlook
22
Structural Trends
23
Table: Vietnam - Planned Investment In Milk Production Capacity
24
Table: Dairy Production & Consumption (Vietnam 2013-2020)
28
Livestock Outlook
29
Latest Updates
29
Table: Vietnam - Livestock Production And Consumption Outlook
30
Table: Risks To Outlook
30
Structural Trends
30
Table: Livestock Production & Consumption (Vietnam 2013-2020)
35
Coffee Outlook
36
Latest Updates
36
Table: Vietnam - Coffee Production And Consumption Outlook
37
Table: Risks To Outlook
37
Structural Trends
38
Table: Coffee Production & Consumption (Vietnam 2012-2020)
42
Commodities Price Analysis
43
Commodities Price Forecasts
43
Table: Select Commodities - Performance And BMI Forecasts
43
Upstream Analysis
45
Asia Machinery Outlook
45
Table: Select Countries - Average Size Of Farms, Hectares
49
Asia GM Outlook
52
Table: Selected Countries - GM Crops Use (mn hectares)
56
Asia Fertiliser Outlook
57
Downstream Analysis
62
Food
62
Latest Updates
62
Structural Trends
63
Table: Food Sales (Vietnam 2013-2020)
65
Regional Overview
68
Competitive Landscape
73
Table: Major Agribusiness Companies (USDmn)
73
Demographic Forecast
74
Table: Population Headline Indicators (Vietnam 1990-2025)
75
Table: Key Population Ratios (Vietnam 1990-2025)
75
Table: Urban/Rural Population & Life Expectancy (Vietnam 1990-2025)
76
Table: Population By Age Group (Vietnam 1990-2025)
76
Table: Population By Age Group % (Vietnam 1990-2025)
77
Methodology
79
Industry Forecast Methodology
79
Sector-Specific Methodology
80

The Vietnam Agribusiness Report features BMI Research's market assessment and independent forecasts for production, consumption and trade across core agricultural commodities.

BMI's Vietnam Agribusiness Report includes independent commodity price forecasting and analysis for key agricultural outputs, an overview of the agribusiness competitive landscape and a discussion of the downstream context of agricultural production in relation to country food consumption forecasts and composite food and beverage trade forecasts.

Key Benefits

  • Use BMI's independent industry forecasts to test other views - a key input for successful planning in dynamic agribusiness markets.
  • Apply BMI's medium-term commodity price analysis to assist with budgetary planning and the identification of investment opportunities and potential risks.
  • Assess the activities and market position of your competitors, partners and clients.

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts and views, highlighting recent changes and key risks to the industry outlook.

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the wider agricultural industry.

BMI Supply & Demand Forecasts

Divided into sections based on various diverse sectors in the agriculture market, the chapter provides insight into each market’s agricultural industry, centred on sector forecasts to end-2019 for the consumption, production and trade of key commodities.

  • Consumption Forecasts: Accompanied by a discussion of the main drivers of consumption growth: macroeconomic factors, food processing trends, price movements and increasingly, demand from the non-food sector.
  • Production Forecasts: Examine the trends influencing BMI’s production outlook: global demand, price increases, public and private sector investment and agricultural efficiency improvements.
  • Trade Forecasts: Accompanied by a discussion of the factors influencing a country’s trade in agricultural goods, including domestic demand, global prices and government trade policies.
  • BMI’s Forecasts: Accompanied by a risks-to-outlook assessment, which examines potential factors that could affect our existing forecast picture and the likelihood of their occurrence.

BMI’s Commodity Price Analysis

Fundamental and technical analysis of the short- and medium-term price outlook for eight agricultural commodities based on globally recognised benchmarks.

Downstream Analysis

Analysis of headline food and drink forecasts, including total food consumption, per capita food consumption and total sector trade, which provide important downstream intelligence for primary agricultural producers.

Featured Analysis

Includes relevant articles from BMI’s daily analysis service. These can include: long-term projections on agricultural imports and exports; our perceptions of the impacts of economic slowdown on key companies and subsectors within the Agribusiness industry in a given country; our analysis of fertilizer production; as well as other relevant analysis of recent news and events.

Competitive Landscape

The reports contain information on prominent companies operating in each market.

Key Commodities Covered By The Agribusiness Market

Reports Include: Grains, Dairy, Livestock, Rice, Sugar, Palm Oil, Edible Oils, Coffee, Cocoa, Cotton, Soybean

Please note – not all reports cover all commodities.

Sources

The Agribusiness reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.